Your credit score can affect whether you get a credit card or loan, how quickly a lender decides, and often what interest rate you pay. Here is how it works in India.
Who calculates your score
India has four credit information companies (credit bureaus) licensed by the RBI:
- TransUnion CIBIL, the best known, which is why people say “CIBIL score”
- Experian
- Equifax
- CRIF High Mark
Each bureau calculates its own score from the data lenders send it, so your scores from different bureaus can differ slightly.
What the score range means
| Score | What lenders usually think |
|---|---|
| 750–900 | Good to excellent. You may qualify for better offers and quicker decisions |
| 700–749 | Fair. You may be approved, perhaps with a higher rate |
| 650–699 | Borderline. Expect stricter checks or a smaller limit |
| Below 650 | Hard to get unsecured credit. Rebuild your score first |
| NH / NA / -1 | No history yet. A starter or secured card can help build one |
These bands are rough guides. Each lender sets its own criteria.
What moves your score
- Payment history (biggest factor). Even one EMI or card payment that is 30 or more days late can drop your score significantly and stays on your report for years.
- Credit utilisation. If you regularly use more than about 30% of your total card limits, lenders read that as financial stress. Paying before the statement date, or asking for a higher limit, can help.
- Length of credit history. Older accounts help. Think twice before closing your oldest credit card.
- Credit mix. Having both secured loans (home or car) and unsecured credit (cards, personal loans), handled well, helps a little.
- Recent hard enquiries. Many credit applications in a short period make you look credit-hungry.
Common myths
- “Checking my score hurts it.” It doesn’t. Your own checks are soft enquiries.
- “Settling a loan is as good as closing it.” It isn’t. A “settled” status means you paid less than you owed, and it hurts your score. Aim for “closed”.
- “Income affects the score.” It doesn’t, directly. Lenders look at your income separately.
How to fix errors in your credit report
Errors such as a loan that isn’t yours, a wrong late-payment mark, or a closed account still showing as open are fairly common.
- Download your free report from the bureau and note the error.
- Raise a dispute on the bureau’s website, and tell your lender as well.
- Under RBI rules that took effect in 2024, lenders and bureaus must resolve complaints within set timelines. As of November 2026, if a complaint is not resolved within 30 calendar days, you are entitled to compensation of â‚ą100 for each day of further delay.
- If the dispute isn’t resolved, escalate it through the RBI’s complaint portal, cms.rbi.org.in, under the Reserve Bank - Integrated Ombudsman Scheme, 2026. As of November 2026, you can do this if there is no reply within 30 days or you are unhappy with the reply, and you must file within 90 days of that period ending or of the last reply, whichever is later.
How to build a score from scratch
- Start with a secured credit card backed by a fixed deposit, or an entry-level card from a bank where you already have an account.
- Use it for small, regular spending and pay the full balance every month.
- Don’t apply for several cards at once.
- In six to twelve months you may have a score good enough for a regular card, though this isn’t guaranteed.
Bottom line
Pay on time, keep your card usage low, apply for credit sparingly, and check your free reports once a year. No one can promise a particular score, but these habits give yours the best chance.
Frequently asked questions
What is a good CIBIL score?
Scores range from 300 to 900. Lenders generally treat 750 and above as good, and it may help you get quicker decisions and better interest rates. Each lender sets its own cut-offs, though, and also looks at your income and existing loans.
Does checking my own credit score lower it?
No. Checking your own score is a 'soft' enquiry and has no effect. 'Hard' enquiries happen when a lender checks your report because you applied for credit, and many of those in a short period can lower your score.
How often is my credit score updated?
Lenders report your repayment data to the credit bureaus regularly. As of November 2026, RBI rules applying from July 2026 have them submit data as on the 9th, 16th, 23rd and last day of each month, so changes may show up faster than before.
How do I get a free credit report?
As of November 2026, RBI rules entitle you to one free full credit report per calendar year from each credit bureau that holds your history: TransUnion CIBIL, Experian, Equifax and CRIF High Mark. Request it on each bureau's website.
